Wednesday, August 5, 2015

Allot CEO: We Won an MNO with "Tens of Millions of Subscribers"

Allot Communications released its Q2 results (here), with revenues of $21.6M - right in the middle of the range provided in the preliminary announcement. The revenues guidance for the rest of the year remains at $100-105M, i.e. $48.9-53.9M for the the 2nd half of 2015.

Last month I quoted an interviewed with Allot's former CEO, Rami Hadar (see - "Allot's Former CEO: 'Security is the Right Direction for Allot'"- here). Allot's President and CEO, Andrei Elefant [pictured] statements made during the earning call, follow up Rami's recommendations ("win more large operators .. I think security is the right direction for Allot":

"According to our strategic plan, we expanded our customer base with new strategic accounts, which we provide constant flow of revenue. .. bookings from new customers was well above our average. During the quarter, we won five new tier-1 operators of which three are mobile operated. 
  • One of these mobile operators selected Allot Service Gateway Tera and our ClearSee solution for its new HP network. This network targets tens of millions of subscribers. The customer has already pledged a multimillion-dollar follow-on order at the beginning of Q3. We see this order as a validation to our strategy of increasing our installed base, creating greater stability in revenue. 
  • Another new customer, this one a fixed line operator purchased 100GE solution, which was delivered during the quarter [here]. Moving into 100GE network is a tend we see with many fixed line operators [indiscernible], and we expect to see additional benefits from this trend going forward.
Large deals reached 21 in total, none of which represent new customers; 15 came from mobile operators, five from fixed line service providers and one from cloud operator. The mobile sector continues to be our main focus and we are pleased with the flow of large orders from this vertical.
  • One of our security customers, a tier-1 mobile operator with more than 20 million subscribers began purchasing another security service two years ago. Today, they provide security services to over 5 million end users. They charge each end user an average of $1 per month with a total of incremental annual revenue of about $50 million. Our security offering is [Technical Difficulty] to our customers because the benefit goes directly into the top line.
See "Allot Communications' (ALLT) CEO Andrei Elefant on Q2 2015 Results - Earnings Call Transcript", by SeekingAlpha, here.

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